All Forum Posts by: John K.

Hi Yaniv, without knowing what part of Fort Lauderdale the property is in it's hard to say for sure, but $1.7M for a 9-plex of that composition seems like a fair but not exceptional price. 

What are the current rents in place now? The DSCR for loan purposes will be calculated off of these rents at purchase, rather than the market rents.

Hi Andre, I've seen quite a few similar situations here in Palm Beach with illegal garage conversions. The first step is to confirm whether it was done legally or not, or if it was abandoned somewhere in the permit process. This can be looked up easily for free on your county website--feel free to message or call me and I can walk you through it. If it was not done legally and was not disclosed by the seller when you bought the property, you can actually hold the seller liable as they had an obligation to inform you of any unpermitted additions. 

Hi Pedro, 

Rent control is banned by state law in all of Florida, so legally you can increase the rent to whatever amount you'd like. 

Of course, as others have mentioned it would also be wise to take into consideration how the tenants might react--even if you are fine with losing them, it can still sometimes make sense to spread the increase over 2 or 3 years to increase the chances of them staying. For the future, I always recommend increasing rent for every unit every year, even if only by 1-3% to avoid having to make a shocking large increase all at once. A property manager can also be very helpful and often will provide more savings in the long run than they cost. 

I used RPM Sunstate in Palm Beach County for a while, and they were good however their fees were a bit high so I ended up switching (they charge both you and the tenant with different fees). They have an office in Jacksonville as well, so just in case here is their website: 

https://www.rpmsunstate.com/

Hi Bryce, in Florida you can act as a property manager with only a real estate license which you mentioned you already have. In that case you can start managing properties immediately, without the need for so much as a business entity. It would be helpful to be at a brokerage that has experience supporting agents in property management as most don't, but I can recommend LoKation in Pompano Beach that is involved in this and takes agents from the whole state. 

Hi Ankith, first I would ask what renovations/fixes does the property need? It's possible you might not need a contractor and could hire out the work yourself to several handman/specialists yourself. Realtors or property managers usually know good workers to recommend in your area. This would save you money since a contractor will mark up the work around 20% from the cost to them. Plus, you will have more control over the work and will learn a lot about properties in general. 

However if you are too busy with work or other things to oversee the renovations yourself, a contractor can be worth the money. You will definitely want a line-item contract that splits out the cost for each part of the job, with good descriptions ("new granite countertop purchae and installation" instead of "new countertop"). Also make sure to have a deadline listed in the contract for the job to be completed, with a financial penalty for if they go past that date. I generally like it to be a reduction per day of the final payment that is due upon work completion. 

Good luck with whatever you choose and feel free to reach out if you have any other questions! 

I believe they only work in Palm Beach County, but I've had a great experience with My Area Realty. 

I do believe things are finally getting better in the Florida home insurance market. For the past several years Citizens has been the only realistic option for most owners with older properties, but this year I've noticed private insurers occasionally offering rates close enough to the Citizens rate (within 20%) which makes them ineligible for Citizens. 

Hi Abby, if I understand things correctly, the FHA title 1 wouldn't be an option as the property being renovated is an investment property. Depending on your equity in both properties, the best option might be a home equity loan (2nd mortgage) on one or both properties. A HELOC is also an option but they generally have lower LTVs and variable rates. Feel free to reach out and we can talk more about your options!

Hi Eliyahu, as others have mentioned there are commercial sites like LoopNet for 5+ unit properties. However in commercial there are a lot more off market deals, and sales that happen without being formally listed. Therefore it will be important to get in touch with a couple of good agents in your desired area so they can bring you deals when they come up.